Session 368

Firm Scope and Industry Competition

Track E

Date: Monday, September 22, 2014

Track X

Time: 14:45 – 16:00

Paper

Room: Roma 1


Session Chair:

  • Jeffrey Macher, Georgetown University

Title: Managing Complexity at the Boundaries of the Firm: A Knowledge-Based Examination in Medical Device Manufacturing

Authors

  • Jeffrey Macher, Georgetown University

Abstract: This paper examines how the knowledge-based view (KBV) can be applied to firm boundary decisions and the performance implications of those decisions. At the center of the paper is a theoretical and empirical examination of how firms efficiently organize manufacturing in a regulated industry. We find that distinct organization approaches are advantaged in the terms of regulatory manufacturing performance, depending on the technological complexity and novelty of products manufactured. We make theoretical and empirical contributions to KBV research that examines organization and performance related to knowledge development and transfer. The medical device manufacturing industry serves our empirical setting.

Title: The Conditioning Effect of Industry Incubation on Internal and External Sourcing of Capabilities: Evidence from the Agricultural Biotechnology Industry

Authors

  • Will Mitchell, University of Toronto
  • Mahka Moeen, University of North Carolina

Abstract: This paper examines the systematic differences in how firms combine internal development with alliances and acquisitions during incubation stage relative to post-incubation stage of a nascent industry. Although the question of how existing firms within existing industries develop new capabilities has been the focus of several research studies in the strategic management, research in the area has abstracted away from analysis of firms’ capability sourcing activities in anticipation of entry into a nascent industry at its early stages. We fill this gap by suggesting that incentives for internal development and external sourcing via alliances and acquisitions differ during industry incubation relative to more established industries. The empirical context of our paper is the agricultural biotechnology industry during 1985-2005.

Title: The Impact of Patent Wars on Firm Strategy: Evidence from the Global Smartphone Market

Authors

  • Yongwook Paik, Washington University in St. Louis
  • Feng Zhu, Harvard University

Abstract: We examine how patent wars affect firm strategy. We hypothesize that, as patent wars intensify, firms shift their business foci to markets with weak intellectual property (IP) protection. This shift is attenuated for firms with larger stock of patents, and is more pronounced for firms whose home markets have weak IP systems. Using data from the global smartphone market, we find support for these hypotheses. Consequently, these changes ultimately shape the global competitive landscape for platform competition in the global smartphone market. This study sheds light on the emerging patent enforcement strategy literature that focuses on how firms leverage their patents as competitive weapons by highlighting how firms, not involved in litigation, react and shift strategy in response to escalated patent wars in platform-based markets.

Title: Within-Industry Market Scope, Internal Capital Markets, and Competitive Investment Conduct: Evidence from the U.S. Electric Power Industry

Authors

  • Afonso Almeida Costa, Nova School of Business and Economics
  • Javier Gimeno, INSEAD

Abstract: Despite plentiful anecdotal evidence, the connection between a firm’s internal capital market and its competitive conduct has not yet been thoroughly addressed in the strategy literature. This proposal addresses this research gap in a within-industry context, where businesses are highly related. To test our developed theoretical arguments, we take the U.S. electric power industry as the empirical setting, focusing more specifically on the generation segment, and assess how a firm’s presence across different electricity generation markets conditions its investment reactions to opportunities sprouting in a given market. Our preliminary findings suggest that multi-market presence leads to stronger investment reactions to opportunities in a given market; whereas opportunities in other markets in which a multi-market firm is involved have no influence on that firm’s investments in a given market.

All Sessions in Track E...

Sun: 08:00 – 09:15
Session 282: The Latest and Greatest in Empirical Methods for Strategy Scholars
Sun: 09:30 – 10:45
Session 1: Frontiers of Value Capture Research: Complementary Developments in the Theory and Empirics
Sun: 11:15 – 12:30
Session 284: The Strategic Process and Competitive Dynamics of Industry Convergence
Sun: 15:45 – 17:00
Session 341: Stakeholders, Board of Directors and Competitive Strategy
Sun: 17:15 – 18:30
Session 601: Competitive Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 366: Markets, Brands, Customers and Competition
Mon: 11:00 – 12:15
Session 342: Resource Based View
Mon: 14:45 – 16:00
Session 368: Firm Scope and Industry Competition
Mon: 16:30 – 17:45
Session 348: Differentiation and Competitive Strategy
Tue: 08:00 – 09:15
Session 349: Leaders, Laggards and Competition
Session 367: What Drives Firm Heterogeneity Across Time?
Tue: 11:00 – 12:15
Session 350: Governance, Organization and Competition
Tue: 15:30 – 16:45
Session 364: Conceptual developments in Competitive Strategy
Tue: 17:15 – 18:30
Session 343: What Drives Competition?

All Sessions in Track X...

Sun: 13:45 – 14:30
Session 295: Keynote: Lifetime Achievement Award
Sun: 14:30 – 15:15
Session 471: Keynote: CK Prahalad Award
Sun: 15:45 – 17:00
Session 203: Acquisition Implementation
Session 215: Yikes: What Now (Reloaded)?: Firm Responses to Stakeholder Activism
Session 398: Corporate Strategy and Corporate Finance: Continuing the Research Conversation
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 338: Making Strategy, Strategic Change and the Role of Sensemaking and Sensegiving
Mon: 09:30 – 10:30
Session 296: How Social Networks Create Competitive Advantage: The Microfoundations Reputation
Mon: 11:00 – 12:15
Session 213: What is In It For Us? How Sustainability Matters for Firm Strategy
Session 352: CEO Decision Making
Session 405: Multi-Sided Platform Strategies
Mon: 13:30 – 14:30
Session 4: Business Models in their Competitive Context
Session 5: Building Strategic States
Session 298: Using Networks to Shape Strategy
Session 299: Dealing with the Euro Area Economic Crisis: Strategic Adjustment in the Period of Turmoil
Session 300: Methodological and Conceptual Frontiers in the New World of Networks
Mon: 14:45 – 16:00
Session 368: Firm Scope and Industry Competition
Session 375: Changing External Environments: How do Multinationals Respond?
Mon: 16:30 – 17:45
Session 245: Human Capital Complementarities
Session 344: Paradoxical Tensions and Innovative Strategies
Tue: 08:00 – 09:15
Session 409: Increasing the Relevance of Strategy Research
Session 446: Empirical Studies and Case Studies of Business Models
Tue: 09:30 – 10:30
Session 297: Granularity of Profit
Tue: 11:00 – 12:15
Session 469: M&As and Innovation
Tue: 14:15 – 15:15
Session 301: Strategy Frameworks: In Quest of Relevance in a Turbulent World
Session 302: Directing Strategy: The Process Challenges of Formulating and Implementing Strategy in a World of Networks
Session 470: Governance Challenges in Globalized Networks
Session 473: Rethinking the Architecture of Global Corporations
Tue: 15:30 – 16:45
Session 208: Interactions, Recombination and Adaptation Processes
Session 346: Management and Strategy Practices Reconsidered
Tue: 17:15 – 18:30
Session 441: Funding Entrepreneurial Ventures: Sources and Successes


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